Black Box presentation Final
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Transcript of Black Box presentation Final
Black Box
Samsung: Inspire the world, Create the future
• Founded in 1938 by Byung-Chull Lee• Electronics division began with a black-and-white TV
• Strong semiconductor and memory sales• Began manufacturing cell phones in the 1990s
Company Overview
Company Overview
26.7% US smartphone market share- ComScore, Jan 2014
30.4% Global smartphone market share- Samsung Strategy/Analytics, Jan 2013
Aaa~Aa (Moody’s)AAA~AA (S&P, Fitch)A1 (Credit rating agencies in Korea)
Industry AnalysisFive Forces Model of Competition Analysis
Threat of New Entrants
○ Low Large CAPEX requirements
Bargaining Power of Suppliers
○ Low Suppliers forced to control SG&A
Bargaining Power of Buyers
◕ Medium High
High quality requirements with price sensitivity
Threat of Substitute Products
◕ Medium High
Relatively low switching costs and complementary goods
Rivalry ● High Large market demand saturated by many different suppliers
Industry AnalysisStrength● Strong distribution networks ● High market share and leading industrial
position● Advanced and innovative technology
Weakness● Product patent infringement● Quality issue for mobile phones● Lack of trying for laptops
Opportunity● Rapid development of smart tech● Revolution driven by big data centered in
mobility, cloud and the Internet of Thing● Operating system dominated by iOS and
Andriod
Threat● Fierce competition with other high-tech giants● Saturated smartphone market
Strength • Heavy R&D
• Strong marketing and advertising team
• Physical retail footprint
• Strong market position
• Wide distribution network
• Various range of premium products
• Leading technology standards
• Broad product and services ranges
• Strong R&D technology
• Focus on environmental-friendly and sustainable products
Weakness • Relies on service manufacturers (e.g. Samsung, Foxconn)
• Top-tier price
• Limited types of products
• Issues of product recalls
• Decline in phone business
• Weak outlook for future development
• High costs of manufacturing prices
• Lose main focus on consumer-electronic products
• Reduction on financial performance
Industry Analysis
Target MarketConsumers:
- 56 % Americans with smartphone
- Urban and Suburban markets
- Gender split
- Majority under the age of 54
- Over $50,000 annual income
- Some college or higher
- Largest ethnic/race: Black-non-Hispanic; Hispanic; White-non-Hispanic
Target MarketFirms:
- Manufacturers
- Resellers
- Retailers
- Distributors
Key Issues
• High degree of competition in virtually all markets
• Patent infringement
• Heavy R&D costs
• Trust crisis
• Weak outlook for new market and product expansion
Value Creation
Inspire Communities
New Technology
Innovative products
Creative Solutions
Industry
Partners Employees
•Product
4P Strategy
In-home consumer electronics Portable consumer electronics Computers and peripherals
•Pricing
- Products for prices that suit for real quality
- Adopt Price Sensitive strategy
•Distribution
•Promotion
Strategic Alternatives
•Product Development
- Add New Features - Improve Quality
•Market Development
- “Experience”Store - Market Expansion
Strategic Alternatives
Strategic Alternatives•Diversification
New products with new markets
Our Strategy
Diversification
- Stuffing features problem
- Blue Ocean Strategy
- Increase market share
- Capture new market
Tactics
1.Create Categories (innovation)
• 4% projected increase in global electronics demand
• Immeasurable opportunity
• “Lifestyle enabler” - Samsung COO
- In-car technology
- In-home technology
- Wearable technology
Tactics
2.Customization ( Build your own
device)
• Reinforce Current Positioning
• Attract New Customers
• Collaborative Marketing
- Self-pricing
- Self-Segmentation
Risks
• Uncertainty
• Significant Investment
Measuring Implementation
• Balanced Scorecard - Backward Metrics
- Forward Metrics (Crucial)
Thank You!Q&A